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You are asked to conduct a benefit - cost analysis to recommend if the local government should undertake a project to develop Gringoland Marine Park.
You are asked to conduct a benefitcost analysis to recommend if the local government should undertake a project to develop Gringoland Marine Park. A set of costs and benefits is given for a year period. Project Gringoland Marine Park Years Costs thousands of $ Construction costs Recurring costs Foregone recreationBenefits Increased tourist revenueNet Benefit: NPV@ NPV@ a What is the role of discount rate in the benefitcost analysis of an environmental project? b Should you recommend the project if the discount rate is Why or why not? Show all the necessary calculations. c Should you change your recommendation if the discount rate is Why or why not? Show all the necessary calculations.
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